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Dim Lighting Case Analysis

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The Dim Lightning Case Analysis

In this week’s case analysis, we are presented with the tough decision for Jim West, General Manager for Dim Lighting. Jim West is presented with an opportunity by his Research and Development Director Robert Spinks to develop new technology. There is much to this case other than just whether or not to fund this expenditure. There is competing input from Accounting and Manufacturing, with support from the Marketing department. Complicating the manners is Mr. West’s own personal desires and considerations. Leading up to this occurrence, there was much that occurred within the confines of the company that has lead to the current situation. In the previous year, Mr. West’s group had failed to meet their operating targets, and profits dropped by 15 percent. This has lead to concern on the part of Mr. West in regards to this year’s performance, and meeting this year’s numbers is paramount to the long term potential for Mr. West. Adding to this dilemma, Mr. Spinks has brought a proposal to Mr. West that involves development of new lighting technology. This program would cost $2.5 million over the next 2 years. The marketing department backs the plan to develop this new technology. However, the accounting department feels that there is no room in the budget for this R&D. The manufacturing department adds to the mix that they desire to put those expenditures into new machinery for the current production line, which will contribute to immediate results. With looking into whether to push for funding of the new technology there are many factors to consider. In the question of funding, one must consider the consequences of project failure, macro and micro problems, systems affected, alternatives, and systems affected. He needs’ to consider what will happen if the funding is not authorized in addition to failed technology. All of

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